Stocks break 9-day rally on selling pressure

Stocks broke a nine-day rally slipping on the investors' selling spree yesterday, as patrons sought quick profits on the week's first trading day.

DSEX, the benchmark index of Dhaka Stock Exchange, lost 21.9 points or 0.45 percent before closing at 4,786.49 points.

As the index crossed the psychological resistance level of 4,800 points last week, a profit-booking pressure emerged, especially in scrips that showed recent gains, IDLC Investments said in its regular analysis.

Also, earnings declarations played a role in defining the trading attitude. “Half yearly declarations were met with dissatisfaction,” the merchant bank said.

LankaBangla Securities said stocks came under pressure over the course of the trading day after initially showing a lack of direction amid mixed performance declared by banks, pharma and construction material stocks. Turnover, another important indicator of the market, also fell 7.3 percent to Tk 754.90 crore on transactions of 17.71 crore shares and mutual fund units.

Of the traded issues, 118 advanced and 159 declined with 41 securities closing unchanged on the premier bourse.

Lafarge Surma Cement dominated the turnover chart with 47.93 lakh shares worth Tk 61.09 crore changing hands, followed by Khulna Power Company, ACI, Shahjibazar Power Company and Grameenphone.

Among the major sectors, textiles gained 1.62 percent in market capitalisation, followed by mutual funds that increased 1.26 percent, banks 0.17 percent and telecommunication 0.12 percent.

Conversely, non-bank financial institutions lost 1.1 percent, followed by fuel and power 1.04 percent, cement 0.74 percent and pharma 0.59 percent.

BD Welding Electrodes was the day's best performer climbing 10 percent, while Fareast Islami Life Insurance was the worst loser with a decline of 17.95 percent.

Chittagong stocks also fell yesterday with the bourse's benchmark index, CSCX, declining 33.46 points to stand at 8,931.78.

Losers beat gainers 123 to 87 while 34 finished unchanged on the Chittagong Stock Exchange. The port city bourse traded 1.34 crore shares and mutual fund units worth Tk 53.71 crore in turnover.